Friday, July 12, 2024

Telkom Group aims to lead the regional data center market

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The Ministry of State-Owned Enterprises in Indonesia has indicated that the telecommunications company, PT Telkom Indonesia Tbk (TLKM), is well-positioned to become a market leader in the data center business within the regional market.

Rosan Perkasa Roeslani, Deputy Minister of State-Owned Enterprises, explained that this opportunity aligns with the vast potential of Indonesia’s digital economy. It is projected to reach IDR 4,531 trillion by 2030, with the contribution to GDP increasing from 4% to 18%.

This growth is accompanied by the rapidly increasing use and consumption of digital services, which require strong digital ecosystems, including data centers.

Rosan emphasized that the demand for data center services from enterprise, digital native businesses, and cloud service providers is expected to grow exponentially by 2030, both in the domestic and regional markets, due to the increasing need for content access.

“This presents a significant opportunity for Indonesia to lead the data center market in the region by establishing its own data center ecosystem,” said Rosan.

To seize this opportunity, Rosan mentioned that Telkom can play a major role in the data center industry and unlock its value through various options to optimize its data center business.

Bogi Witjaksono, Director of Wholesale & International Service at Telkom, stated that TelkomGroup currently operates 30 data center facilities, with 25 in Indonesia and 5 in foreign countries including Singapore, Hong Kong, and Timor Leste.

Bogi also disclosed that Telkom is actively supporting the development of a data center in the National Capital (IKN Nusantara) located in Sepaku, Penajam Paser Utara Regency, East Kalimantan Province. In addition, Telkom is considering several strategic options to unlock the future value of its data center business.

He explained that three crucial aspects are central to a company’s data center business: seamless, connectivity, and eyeball. Seamless connectivity refers to being connected with all of TelkomGroup’s data centers, including edge data centers.

Connectivity implies that Hyperscale Data Centers are connected to TelkomGroup’s broadband backbone infrastructure. Finally, eyeball signifies access to Telkom’s customers who are digital business users.

Bogi noted that TelkomGroup has engaged in strategic collaborations with tech giants and other strategic partners to expand its data center business in the regional market.

Together with Singtel, Telkom is constructing a Hyperscale data center in Batam with an investment value of approximately US$ 581 million. This data center in Batam is committed to using renewable energy, adopting eco-friendly practices, and incorporating a multi-tier system.

“TLKM’s core focus is to solidify its position as a Sustainable Digital Ecosystem Hub in the regional and global markets in the future,” Bogi concluded.

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